Market News

November 22, 2016  Tue 7:47 AM CT

A large trade sees upside potential for ArcelorMittal by next spring.

OptionMonster's tracking program detected the purchase of 20,000 March 8 calls for $0.37 and the sale of 20,000 March 6 puts for $0.28 yesterday. Volume was far above the open interest in both strikes, showing that these are new positions.

This combination trade is especially bullish because a rally would boost the price of the long calls while decreasing the value of the puts that were sold. But the opposite will occur if the stock drops, and the trader will be on the hook to buy shares if they fall below $6 by expiration. (See our Education section)

MT rose 0.86 percent to $7.06 yesterday and is up 11 percent in the last three months. The steel maker is expected to report earnings in pre-market hours on Feb. 3.

Overall option volume was 7 times greater than average in the name yesterday. Calls outnumbered puts by a narrow margin.

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